Supporting Security and Rule of Law Development Worldwide Annual Report. International Police Training and Consulting Services, LLC

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1 International Police Training and Consulting Services, LLC Supporting Security and Rule of Law Development Worldwide 2014 Annual Report January, 2015

2 International Police Training and Consulting Services, LLC 60 East Rio Salado Parkway, Suite 900, Tempe, Arizona Phone A Message from the President of IPTACS On behalf of our Directors, Senior Management Team, the over 500+ IPTACS Associates, and our corporate and educational partners it is my privilege that I present our 2014 Annual Report. It is with great pride that I take this opportunity to present the growth and successes that we have experienced over the past twelve months as we complete year five of the company s founding. I am especially optimistic for 2015 as being an important growth and profitability year for IPTACS. Our greatest strength is the quality of our people. IPTACS Associates and Management Team represent some of the most highly qualified and experienced criminal justice educators, trainers, and consultants in the world as measured by: Criminal Justice experience as a Subject Matter Expert All IPTACS Associates have a minimum of 10 years of experience in their specialist area and 90% have 20+ years of experience Teaching and instructor qualifications All IPTACS Associates are either a certified instructor and/or have a college teaching certificate, and over a quarter have taught in higher education institutions as either an adjunct or full professor Educational and professional development Most IPTACS Associates have a Bachelor s Degree and over 40% have earned either a Masters or Doctorate Degree and over a third of our Associates have graduated from a top Criminal Justice professional development programs such as the FBI National Academy IPTACS continues to be recognized by both government and major prime contractors as a company that has the ability to develop and deliver best practice training programs and consulting services in a wide range of security areas, anywhere in the world, through our Associates, who have trained and consulted in over 80 countries worldwide. These are exciting times for IPTACS and I hope you will get a sense of our passion, expertise, reliability, and innovative culture. Joseph Hauer President & CEO

3 Our Human Capital IPTACS high standards for becoming a certified Senior Training and Consulting Associate, is our primary asset as an organization. In the past year we have grown from less than 400 Associates to over 500+ Associates. Our Associates and Senior Management Team represent some of the most highly qualified and experienced criminal justice educators, trainers, and consultants in the world. IPTACS continuously receives praise from international assistance providers in the United States and internationally about the quality of our Associates and Senior Management Team. These high standards continue to attract the best trainers and consultants to join the IPTACS team and this supports our marketing to both current and future clients. IPTACS has also strengthened its Executive and Senior Management Team over the past 12 months that has included the following personnel: Gerald P. Richard II, Esq. Vice President for Rule of Law Programs IPTACS is pleased to announce the appointment of Gerald Richards as the new Vice President for Rule of Law Programs. Mr. Richard brings a wide range of experience and exceptional qualifications as a distinguished lawyer who has held leadership positions with the Phoenix Police Department, Arizona Attorney General s Office, and as an expert in police community relations and gang prevention. He has received numerous awards for his work including the Dr. Martin Luther King, Jr. Living the Dream Award and the Thurgood Marshall Award of Merit for his work in civil rights, social justice, and community relations. Dr. James J. Ness, Ph.D. Vice President of Criminal Justice Programs IPTACS is pleased to announce the appointment of Dr. Ness as the new Vice President for Criminal Justice Programs. Dr. Ness will lead IPTACS International Criminal Justice Leadership Institute and partnerships with higher education institutions. He is the Founding Dean of the College of Criminal Justice and Security at the University of Phoenix and has had a distinguished career in law enforcement and academia both in the United States and internationally. He has served the U. S. State Department in missions in Bosnia-Herzegovina and as the Dean of Academics for the Haitian National Police Training Center. Mark Logan, IPTACS Senior Executive Leadership Training and Consulting Associate IPTACS is pleased to announce that Mr. Mark Logan joined IPTACS in February, 2014 as an Executive Leadership and Training Consultant. Mr. Logan brings 35 years of law enforcement and security to IPTACS at the state, federal, and international levels. His most recent position was as the Assistant Director Office of Training and Professional Development for the Department of Justice, Bureau of ATF. He has a Bachelor s degree in Management and a Master s degree in Education and is currently pursuing his Ph.D. in Public Safety Leadership. He has served as an Adjunct Faculty for the University of Phoenix, College of Criminal Justice and Security and George Washington University.

4 2014 Business Growth Rule of Law Initiatives In April, 2014 IPTACS signed a contract with Chemonics International, a certified international development company with over 3,000 employees throughout the world, to support training and technical assistance to USAID s International Rule of Law Technical Assistance Services Indefinite Quantity Contract (IQC) from 2014 till This IQC has a maximum ceiling of $500,000,000. Since signing the contract IPTACS has teamed with Chemonics on three Task Order proposals including the recently awarded Task Order by USAID to Chemonics for Security Sector Governance. IPTACS will provide training and technical assistance in supporting USAID to better assess, design, implement and evaluate security sector governance projects throughout the world and especially in Africa from 2015 to 2017 in supporting Chemonics on this award. We are projecting that we will continue to be a subcontractor to Chemonics proposals for this IQC on at least two task orders per year between 2015 and Law Enforcement & Security Initiatives IPTACS had projected that 2014 would be a strong growth year for business in the Near East after completing five highly successful contracts in 2013 for law enforcement training courses in Abu Dhabi. We received requests for multiple training programs for police driving courses, narcotics courses, and immigration and customs enforcement courses from the UAE prime contractor that we were working with in 2014 but unfortunately none of these courses materialized. Dr. James Ness, IPTACS Vice President for Criminal Justice Programs conducted Human Trafficking workshops to Abu Dhabi police leaders over a three week period in August of His presentations were well received and the initiative was published in the UAE media. The Human Trafficking Workshop was conducted twelve times over a three week period and covered topics related to victims of trafficking; identification of who the traffickers are; laws, legislation, and international conventions on human trafficking; and the global efforts to combat human trafficking. (Pictured to the left is Dr. Ness with participants who attended the workshops)

5 IPTACS made a strategic decision to reevaluate the UAE training program and severed ties with the previous Prime Contractor. This decision resulted in the signing of a formal teaming agreement with a highly reputable Middle East management and security firm that will result in a teaming partnership for being an exclusive provider of law enforcement and security training programs in 2015 and beyond in the UAE. It is anticipated that all licensing and company infrastructure will be ready for bidding on UAE security and law enforcement programs by mid-year Current and New Business Partnerships IPTACS continues to be sought out by international firms who are looking for a reliable and strong security and law enforcement partner in support of foreign government law enforcement and security contracts. Our clients and associates benefit from IPTACS solid base of international business relationships. We partner with private companies abroad to build effective training teams, deliver the best results for our clientele, and promote organizational sustainability and independence. Our partners help us understand the unique cultural differences and contributions that each region and country offers to the world community. This local knowledge and understanding is essential in delivering high-quality service tailored to the unique and specific needs of our customers. Currently these partnerships include: Chemonics International, Inc. - Chemonics International, a certified international development company with over 3,000 employees throughout the world has reached out to IPTACS as a teaming partner in supporting democracy and governance initiatives and security sector reform for USAID. IPTACS currently has an Indefinite Quantity Sub-contract for USAID International Rule of Law Technical Assistance Services AID-0AA-I through February, 2018 and recently in 2014 was selected as a sub-contract teaming partner for the recently awarded contract to Chemonics on the USAID Security Sector Governance Task Order SOL-0AA Centum Learning, Centum Learning, A registered Delhi, India company, provides end-to-end training and skill development solutions aimed at productivity improvement for businesses on one hand and employability enhancement for youth on the other. It addresses the entire talent supply chain ranging from students who have just passed Class 8 to Post Graduates and professionals in large corporate sectors. With a presence in India, Bangladesh, Sri Lanka, Saudi Arabia, Nepal and 17 countries in Africa, Centum Learning has acquired and supported rich experiences in the training and development domain in the areas of corporate training, vocational education and skills training, skills at schools/colleges, and skills for global employability. IPTACS has an on-going partnership with Centum on several project proposals in India for law enforcement development.

6 Wise Global Group - IPTACS has partnered with Wise Global Group to support USAID and State Department, INL projects in Afghanistan. Wise Global Group (WGG) is an Afghan-owned group of companies whose mission is to build infrastructure in Afghanistan and generate employment for the Afghan people. WGG has earned an excellent reputation as a dependable and efficient provider of mission-critical services in Afghanistan. They are a company that has earned the trust and confidence of their customers, employees, and investors. This has translated into customer retention and growth, employee loyalty, company recognition, and shareholder value. Since inception, they have provided strategic and dependable support services to military and governmental personnel in Afghanistan. WGG has performed over 50 projects in support of the Department of Defense and U.S. Army Afghanistan. AMAN Security is a leading Security/Risk Management firm based in Jordan that focuses on services tailored to the Islamic world, with specialization in the Middle East and Southern Asia. Its founder and CEO/Chairman Fuad J. Kawar is one of the Middle East s leading pioneers in private security. Mr. Kawar was a key figure in establishing the first security company in the Middle East, in He is currently an international security consultant for several blue chip companies, including the U.S. Embassy in Jordan, The Washington Group and Exxon Mobil. Municipal Solutions, Ltd. has registered Companies in the United Kingdom and United States to support and facilitate the improvement of local governments throughout the developing world. Through a partnership with Municipal Solutions, IPTACS consultants provide guidance in the areas of governance, change management, capacity building and technical support for government entities in Afghanistan, Bosnia, El Salvador, Iraq, Lebanon and Jordan. Recently, Municipal Solutions and IPTACS worked together to support training and consulting programs in the United Arab Emirates. This strong collaboration with Municipal Solutions is an example of how IPTACS clients benefit from our network and services on the world stage.

7 ITR, a Mexican company, is a leading provider for security-related products and services in both the public and private sectors in Mexico. ITR s services include the transport and processing of valuables, and the design, installation, leasing, and monitoring of alarm and CCTV systems. ITR is also a national distributor of police uniforms, tactical gear and equipment. IPTACS contracts with ITR to provide our clients with direct access to one of the largest security and technology training companies in Mexico. Our formal association with ITR, in one of the largest economies in Latin America, adds tangible value for our clients seeking quality training and consulting services in a variety of global settings. Market Overview IPTACS believes that the market in 2015 and long range (5+ years) for international security development is extremely strong. Key market areas for our services will continue to grow throughout the world, especially in the Near East, Western Hemisphere (Latin America), and Africa. We believe our experience, qualifications and organizational structure positions our company as a strong player in these regions and this will offer high growth and profitability potential for the company. Tensions in Middle Eastern and Northern Africa countries has continued to place a spotlight by western countries on identifying strong partners and contract organizations like IPTACS that can assist in developing best practice security development and rule of law programs for both new and emerging democracies and monarchies who see the value in identifying and implementing a more professional and cooperative law enforcement approach between their citizens and the government. IPTACS will continue to identify key partners in strategic regions to represent the IPTACS brand and support new relationships with clients and/or the end users of our services. Corporate Strategy and Structure IPTACS mission, guiding principles, management, and training and consulting staff will continue to be to deliver the highest quality law enforcement training for governments and prime contractor clients in challenging environments throughout the world. To accomplish this we will continue to recruit trainers from throughout the world that represent the industry s highest standards. With a corporate mission To strengthen international security and public safety through the development of sustainable capacity building that supports professional and ethical security and the rule of law IPTACS will continue to serve our clients with the following guiding principles: INCLUSION A commitment to designing our training programs and support services to represent the values, resources, environment and constraints of our clients and their stakeholders. SUSTAINABILITY A commitment to providing our clients with the requisite support services that insures organizational sustainability including best practice policy, regulations, and legal requirements; in-service and recertification standards; and organizational integration of new practices.

8 INDEPENDENCE A commitment to offering training programs that are designed to support future organizational independence for our clients. IPTACS train-the-trainer customized courses blends client constraints with best practices and includes instructional methods that insure participants demonstrate competency during training and on-the-job. Managing for Value IPTACS continues to focus on the management of its financial resources to meet growth needs and support future contingency expenses that will support contract administration in the short term prior to realizing income. This financial management includes: Developing best practice accounting and finance procedures and policies. Contracting with an accounting firm outside of the company that supports best practice financial reporting and consulting (Pemberton Accounting). Developing pricing structures, contractor compensation packages, and direct and indirect overhead percentages that support competitive contract proposals and can withstand client review. Financial management oversight by the Executive Vice President of Administration IPTACS has increased its commercial banking services through Wells Fargo business banking by implementing their Commercial Electronic Office (CEO) service that facilitates secure financial transactions internationally.

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